IIFCL Plans ₹17,000 Crore Bond Issue for FY24
Mumbai, June 21, 2023: India Infrastructure Finance Company Ltd (IIFCL), a state-owned infrastructure lender, is gearing up to raise ₹17,000 crore through bond issuance in the current financial year. The move comes as IIFCL prepares to meet the increasing demand for project finance, according to the company’s Managing Director, PR Jaishankar.
In a recent development, IIFCL successfully raised ₹500 crore through a 10-year bond offering at an interest rate of 7.46%. Despite strong investor demand, the lender chose not to exercise the greenshoe option, indicating confidence in the current offering.
Jaishankar revealed that IIFCL plans to raise an additional ₹2,000-3,000 crore through bonds in the next few months. The company aims to conduct approximately five to six such bond issues throughout the financial year.
For FY24, IIFCL has set an ambitious target of sanctioning ₹50,000 crore in loans, with a projected disbursement of ₹25,000 crore. Since its establishment in 2006, IIFCL has been serving various infrastructure sub-sectors by offering direct lending, takeout finance, credit enhancement, infrastructure investment trusts (InvITs), infrastructure bonds, and refinancing to banks and eligible financial institutions supporting infrastructure projects.
In FY23, IIFCL’s standalone loan portfolio witnessed a year-on-year growth of 7.42%, reaching ₹42,271 crore compared to ₹39,352 crore in FY22. In an effort to enhance asset quality and facilitate longer-tenor debt financing for infrastructure projects, IIFCL made strategic investments in infrastructure bonds, amounting to ₹975 crore, and renewable energy InvIT bonds, totaling ₹325 crore, during FY22, as stated in a May press release.
“The company’s bond and InvIT investments have significantly increased to ₹6,200 crore and ₹6,800 crore, respectively, totaling ₹13,000 crore as of March 31,” the company stated.
IIFCL offers long-term financing for feasible infrastructure projects across various sectors such as transportation, energy, water, sanitation, communication, social infrastructure, and commercial infrastructure.
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